Factors Influencing Consumer Behaviour and Impact of Digital Technology

UNIT 20

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Cultural, psychological, social and personal factors influencing consumer behaviour.........3
P2 Impact of digital technology on consumer trends..................................................................5
LO2..................................................................................................................................................6
P3 Consumer decision making process.......................................................................................6
P4 Importance for marketers to understand consumer buying behaviour...................................7
LO3..................................................................................................................................................8
P5 Comparison of B2B and B2C in decision-making.................................................................8
P6 Approaches of market research..............................................................................................9
LO4................................................................................................................................................11
P7 Ways in which marketers can influence various decision-making stages............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Consumer behavior is predominately the series of actions and activities which
organizations undertake in order to understand the behaviour, needs, wants and psychology of
customers. The main aim of this report is to understand the consumer behaviour and study the
various tactics through which TUI influences the decision making of consumers.
TUI is basically the multinational travel as well as tourism organization being established
in 1923 by Dieter Zetsche and headquartered in Germany.
This report gives a brief overview of cultural, psychological, social and personal factors
influencing consumer behaviour, impact of digital technology on consumer trends, consumer
decision making process, importance for marketers to understand consumer buying behaviour,
comparison of B2B and B2C in decision-making, approaches of market research and ways in
which marketers can influence various decision-making stages.
MAIN BODY
LO1
P1 Cultural, psychological, social and personal factors influencing consumer behaviour
Consumer behaviour is basically the well-through study of groups and individuals along
with their activities which is associated with purchase and usage of the products and services.
There are various factors which actually influences the behaviour of consumers as well as
attitudes.
Cultural factors
It consists of set of the values of particular group of community.
Status
This is one of the important cultural factor which influences buying decisions of
consumers. For example- people from the upper class generally have the tendency to spend their

money on travelling to different places. Thus, due to this they have the habit of spending money
in travelling to the world. While on the other hand, middle and lower class people due to lack of
money do not spend much in travelling instead try to fulfill their basic needs (Smith, 2019).
Social factors
Social factors play a great role in influencing the overall buying behaviour as well as
attitudes of the consumers. These consists of
Reference groups
These are basically people around which mainly influences the attitudes and behaviour of
customers. For example- when any friend or relative of the particular individual refer any
destination or embrace the destination and its environment where that relative have been then
that individual tend to picture that destination as attractive in their mid and thus this forces them
to travel.
Personal factors
These are some of the variables of the individual which directly influences as well as
impact the attitudes of consumers.
Lifestyle
This greatly influences the attitudes and travel decisions of the consumers. Lifestyle of
each and every individual is different. People leading the luxurious life tend to spend more
money on travelling and exploring the different places. Thus, their luxurious life and excitement
goes into their behavior for travelling (Helmefalk, 2019).
Psychological factors
There are various psychological factors which go into the decision of consumers for
travelling to different places.